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Govt to probe hotel prices

Feb 22 2010 21:58

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Johannesburg - The tourism department has commissioned a survey to look into allegations that some accommodation providers are hiking prices excessively for the Soccer World Cup, Minister Marthinus van Schalkwyk said on Monday.

"In recent weeks we have noted allegations that accommodation establishments in the tourism industry are not responsible, and are inflating prices excessively," Van Schalkwyk said in a statement.

"Until now our impression has been that this is not the case, but we believe it should be investigated and the results of the investigation made public."

He said the survey would help safeguard the reputation of the South African tourism industry since South Africa is known as a "value-for-money destination". "Price-hiking could damage the reputation of our tourism industry.

"However, at the same time it must be kept in mind that June and July 2010 will be high season in South Africa, and tourists should not expect the normal low-season prices for that time of the year," he said.

Grant Thornton has been commissioned to conduct the survey, which is expected to be completed in three weeks.

The company has also been asked to benchmark South African accommodation prices against those of other countries that previously hosted the Fifa World Cup, Van Schalkwyk said.

Private homes being rented out during the World Cup would not be surveyed and the department was not responsible for the prices set by home owners.

- Sapa

 
 
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